Food Business News - July 31, 2012 - (Page 1)

FOODBUSINESS NEWS NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY July 31, 2012 ® Slowing global economy pressures McDonald’s net OAK BROOK, ILL. — Currency exchange rates negatively impacted financial results for McDonald’s Corp. during the second quarter, contributing to a 4% decline in income. For the quarter ended June 30, the company had income of $1,347 million, equal to $1.32 per share, which compared with income of $1.410.2 million, or $1.35 per share, during the same quarter of the previous year. Revenue for the quarter was $6,915.9 million, up slightly from $6,905.4 million during the same quarter of the previous year. “McDonald’s global comparable sales remained solid for the quarter while overall results reflected the slowing global Continued on Page 16 Story on Page 31 Big changes may be looming for Dole Food Co. WESTLAKE VILLAGE, CALIF. — The Dole Food Co. is in the process of a strategic review that may lead to the sale or spin-off of its worldwide packaged foods business, or a separation of its worldwide packaged foods business as well as its operations in Asia. The company updated its strategic review when it announced its earnings for the second quarter of fiscal 2012, ended June 16. “While we are not yet in a position to discuss specific transactions, we are pleased with our progress and optimistic about completing a transaction this Continued on Page 18 Drought effects go well beyond corn, soybean crops he impact of the most widespread U.S. drought in more than 50 years is obvious on basic commodities such as corn and soybeans, sending both to alltime record highs two weeks ago. But there also is a major “trickle-down” effect on other products such as eggs, meat and milk, as well as in less obvious products, such as beverages sweetened with high-fructose T corn syrup and related corn-based items. “The severe drought in the Midwest is expected to affect prices for corn and soybeans as well as other field crops, which should, in turn, impact retail food prices,” the U.S.D.A.’s Economic Research Service said in its latest food price outlook last week. The agency left unchanged its inflation forecast for all food and food at home (grocery store) prices for 2012 at 2.5% to 3.5%. The E.R.S. noted that about 14% to 15% of a basic commodity price increase generally is passed on to retail products using that commodity as an ingredient. Specifically, the agency noted that if the farm price of corn increases 50%, then retail food prices as measured by the Consumer Price Index will increase by 0.5% to 1%. The United States is currently in that territory. Nearby September corn futures prices at the Chicago Board of Trade set an all-time Continued on Page 20

Table of Contents for the Digital Edition of Food Business News - July 31, 2012

Food Business News - July 31, 2012
Slowing global economy pressures McDonald’s net
Big changes may be looming for Dole Food Co.
Drought effects go well beyond corn, soybean crops
Table of Contents
Web Contents
Editorial - Global food parallels oil refining
Investments help drive earnings gain at Hershey
Prepared foods market to reach $32.45 billion in 2012
PepsiCo earnings fall on restructuring costs
Private investment group to buy Peet’s Coffee for $1 billion
Sales of Fairtrade-certified products grow 12%
Annie’s earnings climb 18% in first quarter
Food and beverage C.P.I. up 0.1% in June
Nestle Health Science acquires stake in medical foods company
Starbucks breaks ground on $172 million facility
Cal-Maine to buy egg production assets
Emmi Roth expanding in Wisconsin
B&G profit rises behind Culver Specialty business
Paramount Citrus acquires Healds Valley Farms
Washington - Government takes steps to aid drought-stricken farmers and ranchers
Ingredion: More than a catchy name
Ingredient Innovations - The next step in sodium reduction
Health and Wellness - Trans fats in review
Industry Images - Images from the I.F.T.
New Food Products
Supplier Innovations and News
Ingredient Market Trends
Ingredient Markets
Ad Index
Food Business in the News

Food Business News - July 31, 2012